The demise of an industry

The demise of an industry

The market outlook in the pork industry continues to be troubling. Prices are weak, producers are losing money on every hog going to market, and there’s no end in sight. Brad Marceniuk, a livestock economist with the Saskatchewan Ministry of Agriculture puts together a regular Hog Market Update. In the most recent report, he notes that reduced pork demand in the United States, due mainly to lower American exports has weighed heavily on the market. China and Russia are buying a lot less and this reduction in demand seems to have started before the H1N1 outbreak. Lean hog futures prices continue to be well below prices earlier in the year. Based on the futures market, hog prices are going to stay at rock bottom levels for the remainder of this year and for the first quarter of 2010. In Canada, we’re now on our second cull program. The Americans have not been cutting their herd. Total Canadian hog inventory peaked in 2005. Since that time, it has dropped by 20 per cent. The decline is much more dramatic in Saskatchewan. Since 2005, Saskatchewan’s total hog inventory has declined by nearly 42 per cent. It’s amazing that any producers are left in the business after years of losses and no light at the end of the tunnel. I’m Kevin Hursh. DynAgra, your independent ag retailer, is proud to support the pork industry.

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